Families across the nation are victims of the foreclosure process due to the declining real estate market and the economic crisis. There have been so many job losses that result in nonpayment of so many bills. Paying a mortgage has become very difficult for many American families.
The foreclosure process is an ugly experience and not one that any family would deliberately go through. However, it is happening every day and people are finding that they are out on the streets with no where to go. Some have taken the liberty to give up the home before the foreclosure process and before their credit is ruined and move into a smaller apartment to save face.
It is not a good feeling to come home and see a sign on your door or your furniture on the streets. Some banks are becoming quite sympathetic of the situation after the President announced the possibility of offering the homeowner a loan modification.
Most people are not aware that they can hire an attorney to defend the foreclosure process. The attorney is knowledgeable about the real estate laws and is able to legally prepare for a fight with the bank.
When an attorney is involved, the bank will retreat if it has sought aggressive measures before. The bank can no longer contact the homeowner directly. The bank has to go through the attorney to discuss any discrepancies with the homeowner.
The homeowner has to pay a retainer fee to the attorney and a monthly fee for the attorney’s representation. The monthly fee is accumulated as the total fee that the attorney would charge at the time of court representation.
A loan modification will help to buy the homeowner some time and assist them with getting a lower monthly mortgage payment that they may be better able to afford. The loan modification requires statement of financial duress, which explains why the homeowner defaulted on the loan. Pay stubs, tax returns, income and expense worksheets and other documents may be requested from the homeowner.
The bank will then determine if the homeowner is eligible for a modified loan. Of course, most banks are willing to work with the homeowner to keep the loan current because a foreclosed property is not in the best interest of the bank. It only adds to their inventory and loss of profit.
When the homeowner is represented by an attorney, the process can take up to a year and a half to two years depending on how the bank responds. There is usually a mortgage loan investigator that works for the attorney. This person will go through the loan documents that the homeowner signed at closing to find discrepancies to use against the bank.
The bank will have their own attorney representation and so the process becomes longer when the attorneys wait for each other to respond on behalf of their client.